African CEOs are entering 2026 with ambitious goals and a pronounced shift in strategic priorities, as artificial intelligence (AI) increasingly informs corporate decision-making across the continent. According to KPMG’s 2025 Africa CEO Outlook, 86% of African CEOs plan to engage in mergers and acquisitions (M&A) within the next three years, up from 77% in 2024. This trend reflects a broader strategy of consolidation, scalability, and technology-driven growth aimed at navigating global uncertainties.
The survey, released on November 4, 2025, is based on insights from 130 chief executives in southern, eastern, and western Africa. It not only highlights which geographic areas are witnessing a surge in business confidence but also underscores how executives are reshaping their strategies to embrace AI, digital transformation, and cross-border expansion.
Confidence in global economic growth among African CEOs stands at 53%, which, while lower than the global average of 68%, shows an increase from 50% in the previous year. Additionally, optimism regarding local economic conditions has grown, with confidence levels rising to 63% from 61% last year. This cautious yet clear optimism is indicative of how African businesses are aggressively adopting technology and M&A strategies to secure their futures.
Notably, 78% of African CEOs express confidence in their organization’s growth prospects, closely aligning with global sentiments where 79% of executives share similar views. Ignatius Sehoole, CEO of KPMG South Africa and KPMG One Africa, stated that African CEOs are actively adapting to global challenges while investing in future-oriented strategies through AI, talent acquisition, and sustainable growth initiatives.
Markets in Nigeria, Kenya, and Egypt are witnessing a surge in M&A activity, largely driven by technology and e-commerce firms seeking to enhance regional scale and operational efficiencies. For instance, Egypt’s MaxAB has expanded its presence in North Africa through strategic acquisitions, while Nigeria’s TradeDepot and Kenya’s Sendy are focusing on restructuring and regional partnerships to sustain their growth momentum.
This optimism is tempered by challenges such as inflation, currency fluctuations, and shifting geopolitical landscapes. However, rather than retreating, Africa’s business leaders are leveraging this period to position themselves for scalability. The rising intention for M&A reflects this proactive mindset.
Increasing Focus on Mergers and Acquisitions
The statistic that 86% of African CEOs plan to pursue mergers or acquisitions confirms a notable shift toward strategic integration. Companies across the continent are eager to solidify their market presence, enhance digital capabilities, and secure supply chain advantages. This trend mirrors an overarching global appetite for deal-making, with 89% of CEOs worldwide reporting similar intentions.
The renewed interest in M&A is particularly evident after years of turbulence in Africa’s trade landscape. From 2023 to 2025, the continent saw a mix of record highs and sharp downturns. Notably, the first half of 2025 recorded 29 high-tech M&A deals, a 45% increase compared to the same period in 2024, marking it the most active half-year for high-tech transactions in Africa.
Conversely, deal volumes outside the technology sector decreased by 21% year-on-year (excluding South Africa), with the total falling to $4.66 billion—well below 2022 figures. Nevertheless, high-value transactions in mining, telecommunications, fintech, and energy sectors offer a glimmer of optimism, suggesting that while the overall number of deals may be down, the focus on strategic acquisitions is becoming increasingly targeted and transformative.
Artificial Intelligence as a Strategic Catalyst
Artificial intelligence (AI) has emerged as a pivotal factor in shaping M&A strategies throughout Africa. Seventy-one percent of African CEOs report investing in AI to boost operational efficiency and competitiveness, with 26% planning to allocate more than 20% of their annual budgets to AI—nearly double the global average.
This signals a significant shift in perspective: African executives are beginning to view AI not merely as a future trend but as an immediate avenue for growth. Joellen Pearce, incoming CEO of KPMG South Africa, emphasized that for organizations to effectively adopt and scale AI, they must decide whether to build, buy, or partner—each choice carrying unique risks and opportunities based on their existing capabilities and governance maturity.
Despite challenges such as unreliable power and inadequate broadband infrastructure, these obstacles have not deterred CEOs from driving innovation. Forty-five percent are prioritizing investments in cybersecurity and digital resilience, while 40% are integrating AI into their workflows. Moreover, 34% are advocating scalable technology solutions to build digital capacities.
Workforce Development in the Age of AI
The digital transformation is fundamentally reshaping workforce strategies. Eighty-one percent of African CEOs believe that enhancing their employees’ AI skills is directly correlated with business success, and 67% are reallocating talent into AI-enabled roles.
This trend is especially pronounced in West Africa, where companies are redesigning roles and career paths to align with AI-driven collaboration. Meanwhile, East Africa is focusing on attracting new AI and technology talent, whereas Southern Africa balances reskilling efforts with employment strategies.
Thora Adeyemi, CEO of KPMG West Africa, noted that Africa’s youthful workforce presents a considerable strategic advantage. As digital literacy and AI competencies become essential leadership traits, CEOs are evolving into communicators, innovators, and champions of change in their organizations.
Commitment to Environmental, Social, and Governance Standards
Environmental, social, and governance (ESG) priorities remain paramount for African CEOs. Despite facing complex regulatory landscapes, 79% express confidence in meeting ESG requirements, while 74% leverage AI to mitigate emissions and enhance energy efficiency.
However, only 55% feel fully prepared to comply with new ESG reporting standards—compared to 77% globally. Challenges related to supply chain decarbonization and limited technical expertise persist. Nonetheless, African corporate leaders are increasingly embedding sustainability into their core business strategies; 46% now integrate ESG goals into their operations, indicating a shift from mere compliance to value-driven initiatives.
West Africa leads the continent in ESG reporting and compliance at 60%, followed by East Africa at 48% and Southern Africa at 35%. As Benson Ndungu, CEO of KPMG East Africa, articulated, CEOs across the continent recognize that sustainability is not an ancillary concern but a vital component of competitive advantage.
The KPMG 2025 Africa CEO Outlook encapsulates a pivotal moment for CEOs, balancing optimism with pragmatism, growth with governance, and innovation with inclusion. Despite facing economic headwinds, African business leaders are prioritizing M&A, AI, and sustainability as foundational pillars for future growth.
